Navy's $74M SWRMC contract for fleet technical assistance awarded to Amentum Services, Inc. after full and open competition

Contract Overview

Contract Amount: $74,019,351 ($74.0M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-03-01

End Date: 2022-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $40.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE SOUTHWEST REGIONAL MAINTENANCE CENTER (SWRMC) HAS PRIMARY RESPONSIBILITY TO PROVIDE DIRECT SUPPORT TO FLEET UNITS AND TYPE COMMANDERS IN MATTERS OF WATERFRONT FLEET TECHNICAL ASSISTANCE (FTA), ASSESSMENT, MAINTENANCE TECHNIQUES, AND TRAINING ASSOCIATED WITH THE OPERATION, INSTALLATION, MAINTENANCE, REPAIR AND READINESS OF SHIPBOARD EQUIPMENT AND SYSTEMS.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $74.0 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF THE SOUTHWEST REGIONAL MAINTENANCE CENTER (SWRMC) HAS PRIMARY RESPONSIBILITY TO PROVIDE DIRECT SUPPORT TO FLEET UNITS AND TYPE COMMANDERS IN MATTERS OF WATERFRONT FLEET TECHNICAL ASSISTANCE (FTA), ASSESSMENT, MAINTENANCE TECHNIQUES, AND TRAINING ASSOCIATED WITH THE O… Key points: 1. Contract provides critical technical assistance and maintenance support for shipboard equipment and systems. 2. Amentum Services, Inc. has been a significant provider of these services to the Navy. 3. The contract duration of 5 years indicates a long-term need for these specialized services. 4. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not managed carefully. 5. The award was made under full and open competition, implying a robust bidding process. 6. The geographic focus on the Southwest region highlights the importance of localized support for fleet readiness.

Value Assessment

Rating: good

The total contract value of approximately $74 million over five years averages to about $14.8 million annually. Benchmarking this against similar large-scale technical support contracts for naval fleets is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while common for complex services, requires diligent oversight to ensure costs remain reasonable and do not escalate beyond initial projections. The fixed fee component provides some cost certainty for the contractor, but the 'cost plus' element means the government bears the risk of actual expenses incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition process, indicating that multiple qualified vendors were invited to submit proposals. The presence of two bids suggests a competitive environment, though the exact number of proposals received and the evaluation criteria would provide a clearer picture of the competition's intensity. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing and innovative solutions available in the market, as multiple companies vie for the contract.

Public Impact

Fleet units and Type Commanders in the Southwest region directly benefit from enhanced operational readiness and reduced downtime. Services include technical assistance, assessment, maintenance techniques, and training for shipboard equipment and systems. The contract supports the U.S. Navy's operational capabilities and the maintenance of critical naval assets. Workforce implications include the potential for skilled technical jobs in engineering and maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Limited public information on the specific performance metrics and evaluation of Amentum's past performance.
The duration of the contract (5 years) means potential for long-term reliance on a single contractor.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Amentum Services, Inc. is an established contractor with experience in similar defense support services.
The contract addresses a clear and ongoing need for fleet technical assistance and readiness.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technical assistance and maintenance. The market for such specialized naval support services is concentrated among a few large defense contractors. Spending in this area is driven by the need to maintain a high level of readiness for the U.S. Navy's fleet, encompassing complex shipboard systems. Comparable spending benchmarks would typically be found within broader defense procurement data for fleet readiness and maintenance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless Amentum actively engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to track costs and ensure the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Naval Fleet Maintenance Contracts
Defense Engineering Services
Shipboard Systems Support
Fleet Technical Assistance Programs

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.0 million to AMENTUM SERVICES, INC.. IGF::OT::IGF THE SOUTHWEST REGIONAL MAINTENANCE CENTER (SWRMC) HAS PRIMARY RESPONSIBILITY TO PROVIDE DIRECT SUPPORT TO FLEET UNITS AND TYPE COMMANDERS IN MATTERS OF WATERFRONT FLEET TECHNICAL ASSISTANCE (FTA), ASSESSMENT, MAINTENANCE TECHNIQUES, AND TRAINING ASSOCIATED WITH THE OPERATION, INSTALLATION, MAINTENANCE, REPAIR AND READINESS OF SHIPBOARD EQUIPMENT AND SYSTEMS.

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $74.0 million.

What is the period of performance?

Start: 2017-03-01. End: 2022-02-28.

What is Amentum Services, Inc.'s track record with similar naval support contracts?

Amentum Services, Inc. has a significant history of providing support services to the U.S. military, including extensive work with the Navy. They are known for their capabilities in areas such as platform integration, sustainment, and technical services. While specific details on past performance for SWRMC are not provided in this data snippet, Amentum's broader portfolio suggests they possess the experience and infrastructure necessary for such complex contracts. Their track record often includes managing large-scale, multi-year agreements requiring specialized technical expertise and logistical support, aligning with the requirements of this contract. Evaluating their past performance on similar contracts would involve reviewing metrics related to on-time delivery, cost control, quality of service, and customer satisfaction reported in official government performance databases.

How does the $74 million contract value compare to similar fleet technical assistance contracts?

The $74 million contract value over five years, averaging approximately $14.8 million annually, represents a substantial investment in fleet technical support. Direct comparisons are difficult without knowing the precise scope of services, geographic coverage, and complexity of the systems supported by other contracts. However, large naval maintenance and technical support contracts can range from tens of millions to hundreds of millions of dollars annually, depending on the fleet size, operational tempo, and types of vessels involved. This contract appears to be a significant, but not exceptionally large, award within the context of major naval support services. Factors like the number of ships supported, the criticality of the systems, and the required response times would influence its relative value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. While the contractor is guaranteed a fixed fee, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs are higher than anticipated due to inefficiencies, unforeseen technical challenges, or scope creep, the total contract price will increase. This places the financial risk on the government. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong contract administration to ensure the contractor exercises cost control and efficiency. The fixed fee itself is not subject to change, but the total expenditure can grow significantly.

How effective is full and open competition in ensuring value for taxpayer money in defense contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in defense contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment where companies strive to offer the best combination of price, technical capability, and performance. This competition drives down prices, encourages innovation, and provides the government with a wider range of options. When multiple qualified bidders participate, the government can benchmark proposals against each other, leading to better price discovery and negotiation leverage. While the process can be resource-intensive, its potential to secure better deals and higher quality services makes it a cornerstone of responsible public procurement.

What is the historical spending pattern for SWRMC technical support services?

The provided data covers a single contract award from March 2017 to February 2022 with a total value of $74,019,351.11. This represents spending for a specific period and contractor. To understand historical spending patterns for SWRMC technical support services, one would need to examine contract awards over a longer timeframe, looking at previous contracts awarded to SWRMC for similar services, including those awarded to different contractors. Analyzing trends in contract values, durations, competition levels, and contract types over several years would reveal whether spending has increased, decreased, or remained stable, and how the procurement strategies have evolved.

What are the implications of the contract being awarded to Amentum Services, Inc. for the small business ecosystem?

As this contract was awarded under full and open competition and does not appear to have a small business set-aside component (based on `ss: false` and `sb: false`), its direct impact on the small business ecosystem is limited. Large prime contractors like Amentum are often encouraged or required to subcontract portions of their work to small businesses. However, the provided data does not specify any small business subcontracting goals or achievements for this particular contract. Therefore, the extent to which small businesses will benefit depends on Amentum's subcontracting strategy. Without this information, it's difficult to assess the positive or negative implications for small businesses in this sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002417R3019

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,595,738

Exercised Options: $89,595,738

Current Obligation: $74,019,351

Actual Outlays: $4,487,158

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $16,907,434

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4042

IDV Type: IDC

Timeline